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Tether Plans US-Only Stablecoin In Response To Trump’s Regulatory Support
In a recent development, Tether, the largest stablecoin issuer by market capitalization, has announced plans to launch a new US-only stablecoin in response to the regulatory support provided by the Trump administration. This move comes as a significant step forward for the company, which is seeking to capitalize on the favorable environment and expand its presence in the US market.
The news follows a recent clarification from the US financial authorities regarding the classification of stablecoins as securities, which has alleviated some regulatory burdens previously imposed by the Biden administration. According to sources close to the matter, Paolo Ardoino, CEO of Tether, sees this new development as an opportunity to create a domestic stablecoin that could function effectively as a settlement currency.
Ardoino’s optimism is mirrored by industry experts who emphasize the need for a cohesive federal framework for stablecoins. Jonathan Levin, co-founder and CEO of Chainalysis, highlighted the challenges faced by financial services firms and international enterprises in adopting stablecoins on a larger scale without such a framework in place.
The introduction of a US-only stablecoin by Tether is seen as a crucial step in addressing these concerns. The move would enable the company to further solidify its position in the market while also catering to the growing demand for stablecoins in the US.
Notably, the news coincides with Circle’s plan to go public in the US. While Tether has historically been associated with international transactions and cross-border settlements, a domestic stablecoin could be a game-changer for the company, allowing it to tap into a vast market opportunity.
The development has significant implications for the broader crypto space, as it underscores the growing recognition of the potential benefits offered by stablecoins. The creation of a US-only stablecoin could facilitate greater financial inclusion and accessibility, potentially paving the way for widespread adoption in the country.
As an industry leader, Tether’s decision to launch a domestic stablecoin reflects its commitment to innovation and adaptability in response to regulatory shifts.
Source: https://bitcoinist.com/tether-plans-us-only-stablecoin-in-response/
